Korean Air to finalize $32.7 bn deals with Boeing, GE Aerospace

Korean Air Lines Co., the country’s top full-service carrier, is set to soon finalize $32.7 billion deals with Boeing Co. and GE Aerospace for new aircraft and engines to expand and upgrade its fleet for full integration with smaller rival Asiana Airlines Inc.

Korean Air Chairman and CEO Cho Won-tae, Boeing President and CEO Kelly Ortberg and GE Aerospace Commercial Engines President and CEO Russell Stokes decided to deepen their cooperation on Friday in Washington, D.C.

Korean Air said on Sunday Cho and Ortberg agreed to soon execute a memorandum of understanding signed in July 2024 for the airline to buy 20 777-9 and 20 787-10 planes from Boeing by 2033, with options for an additional 10 aircraft in a $24.9 billion deal.

The carrier said it would finalize a $7.8 deal to order eight spare engines from GE Aerospace, with options for two more, and engine maintenance services.

“By modernizing its fleet, Korean Air will provide customers with a more pleasant and comfortable travel experience while striving to reduce carbon emissions and implement ESG management policies by switching to more fuel-efficient aircraft,” Korean Air said in a statement, referring to environment, social and governance.

The company completed a 1.8 trillion won ($1.2 billion) acquisition of Asiana last December, paving the way for the birth of one of the world’s 10 largest carriers.

SOUTH KOREAN COMPANIES’ INVESTMENT IN THE US

South Korea’s Minister of Trade, Industry and Energy Ahn Dukgeun and US Commerce Secretary Howard Lutnick also attended the signing ceremony for the three companies’ collaboration.

It was the first time for the government officials to attend such a meeting together.

Ahn, visiting Washington, D.C. for the second time in a month, showcased South Korean companies’ investment in the US amid mounting concerns over President Donald Trump’s plan to impose tariffs on trading partners worldwide.

“The cooperation will help Korean Air become one of the top 10 global airlines,” Ahn said. “The Korean government will continue to actively support cooperation between Korean and US industries.”

Write to Jung-Eun Shin and Dae-Hun Kim at newyearis@hankyung.com
 

Jongwoo Cheon edited this article.